A Presentation on

Comprehensive Financial Plan

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 Index
Club Kautilya 3

Why Financial Planning 4

Club Kautilya Comprehensive Financial Plan 6

Approach 7

Process 8

Goals and Objectives 9

Four Pillars of Wealth Management 10

The Four Pillars Strategy 11

Popular Investment Advice and Chanakya Niti - 3 illustrations 12

3 Key differences between Normal Financial Plan and Club

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Kautilya Comprehensive Financial Plan
Personal Resource Plan 14

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 Club Kautilya
 Club Kautilya is an initiative of ‘Microsec’ to provide Complete Financial Solution
using Chanakya Niti for Prosperity.

 At Club Kautilya, we work upon Personal Resource Planning based on Four Pillars
Strategy of Investments, Risk Management (Risk Profile, Insurance & Estate
Planning), Taxation and Loans.

 The wide scope of Personal Resource Planning includes Personal Financial Planning
and Execution, applying Wisdom of Chanakya with modern tools and technologies.

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 Why Financial Planning
 Which is the Right Asset Class “Equity, Debt, Bullion or Real Estate”? If we divide the last 20
years in blocks of 5 years and compare the returns, then we see that different asset classes
have outperformed in different blocks.
• This shows that, no particular asset class is best, but it is the right mix of asset allocation.

 In current dynamic economic environment, where the news flow is very fast, instability of
the mind is a natural process, which distracts an investor from his objectives.
• In such scenario, concrete analysis is needed for decision making.

 Income tax reduces the in hand income by 30.9%.

• The pre tax and post tax return analysis is critical for decision making.

 One unforeseen fatal event like an accident, death or critical illness can ruin your life long
savings.
• Proper and adequate risk management is of utmost importance.

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 Why Financial Planning
 Loans are your liabilities i.e. what you owe to others.
• The liabilities need to be under control and should be within repaying capacity.

 life is important but death is a perpetual truth.

• You should have your Nomination, Will and Estate Planning in place.

Your Financial Plan documents your strategy of asset allocation, risk profile, financial goals,
insurance, loan management and estate planning with analysis and report on your net worth,
assets, liabilities, future cash flow and risk mitigation.

“The planning is like the light that shows the path under darkness”

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 Club Kautilya: Comprehensive Financial Plan

Your Personalized Comprehensive Financial Plan encompasses:

 Net Worth Statement and Analysis

 Current and Future Cash Flow Pattern
 Risk Management- Risk Profile, Insurance and Estate
Planning
 The Circle of Prosperity - Grading of your financial position
 Goals and Objectives- Self and Spouse, Children, Parents
and Individual Social Responsibility
 Asset Allocation
 Taxation
 Loans

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 Approach

Kautilya Modern
Expert
Thoughts Principles
Knowledge
& Nitis & Practices

Gather
Analysis and Comprehensive Verification Proper and
Relevant Data Periodical
Objectives Financial and Systematic
and Revision
Identification Planning Authentication Implementation
Information

“A work done well under a plan yields good results even though the fate is in opposition”

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 Process
Input Analysis & Reporting Post Report
Assistance in understanding
Collecting information Analysing information
the report
Setting goals Validation of goals Transparent execution of plan
Sensitivity analysis of growth of income from
occupation and income from investment, by
Periodical review
applying unique methodology of the “Kautilya
Matrix of Growth Rate”
Striking the right asset allocation
Insurance –Coverage & Product
Income tax planning with unique calculation
of pre tax and post tax impact of borrowings
Unique model of loan with ratio analysis
Analysis of nomination and estate planning

“Goddess Lakshmi abandons them who start a work without examining the opportunities”

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 Goals and Objectives

Individual Social
Self & Spouse Children Parents & Family
Responsibility (ISR)
 House  Education  Unfulfilled Goals  Society
 Car  Marriage  Maintenance  Nation
 Maintenance -  Maintenance  Social & Family  Values & Religion
Retirement,
 Social Security  Delightment  Helping the
Medical,
Creation of God
Emergencies etc.
 Lifestyle, Leisure
& Tours

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 The Four Pillars of Wealth Management

Investments Risk Management Taxation Loans

Risk Managers Insurance Tax consultants do Loan Advisors
assess your risk consultants choose legitimate tax assess your current
and return the best standalone planning, suggest liabilities and
appetite or combination of tax friendly interest paid
plans, assess risk thereupon and
profile & guide you investments , check loan repaying
on estate planning structures and capacity
ensure regulatory
compliances

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 The Four Pillars Strategy
 Strike the right allocation of asset classes
 Keep balance among risk, return and liquidity
INVESTMENTS  Invest in assets having low income tax implication
 Invest regularly

 Insure properly & adequately

RISK  Cover all insurable risks including life, accident, critical illness, medical, household etc.
MANAGEMENT  Do nomination properly
 Record properly and do not forget to renew

 Use benefits of deferment of taxes

 Avail all deductions available for investments, insurance and tax free income
TAXATION  Use tax friendly instruments like mutual funds, NPS, provident fund, NABARD bond etc.
 Use deductions available for interest and repayment of housing loans

 Examine repayment schedule and match with cash flow before taking loan
 Assess interest paid on loan v/s return earned on investments
LOANS  Avoid personal loan and loans to carry forward of credit card dues
 Avoid loan for expenditure, Build assets by loan.

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 Popular Investment Advice and Chanakya Niti – 3 illustrations

Popular Investment Advice Chanakya Niti

Invest for Defined Term. The Investment should be linked

Invest for Long Term with objective. Once goal is attained, one should not hesitate
to review.

Objective is superior and not the asset class. Every

Equity Investing is Superior alternative asset class has some value so link your objective
with alternatives . Have the right asset allocation.

Age is not the only determining factor for equity investment.

It is an useful input in Risk Assessment but Equity investment
Less the age, more the
or Asset allocation is result of comprehensive analysis of
investment in Equity
Financial Requirement, Risk taking ability and Emotional
Tolerance.

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 3 Key Differences between Normal Financial Plan and
Club Kautilya Comprehensive Financial Plan
Correlation between Future Cash Flow Growth out of Occupation and Investment
Normal Financial Plan does not consider the correlation between future cash flow growth
out of occupation and investment. The Club Kautilya’s Comprehensive Financial Plan have
unique model of “Club Kautilya Matrix of Growth Rates” where the target return of
investment is derived by sensitivity of future growth rate in cash flow from occupation.

Quantification of ideal Asset Allocation, Risk Management, Tax Planning and Loan Management
Normal Financial Plan does not measure degree of adequacy of Asset Allocation, Risk
Management, Tax Planning and Loan Management, while Club Kautilya’s Comprehensive
Financial Plan gives specific grade to each component which ranges from 1 to 5.

Scientific Asset Allocation

Normal Financial Plan normally provide mechanical asset allocation like if your age is 30
years, invest 70% in equity while Club Kautilya’s Comprehensive Financial Plan provide
recommendation of asset allocation based upon Risk Profile which is a factor of Financial
Requirement, Risk taking ability and Emotional tolerance.

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 Personal Resource Plan
Health

Investments
Wisdom

Risk Profiling
Income Tax

Insurance &

Peace
Four Pillars
Strategy

Personal Liability
Management

Occupation Plan

Prosperity
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 To become a member:
Email: member.ck@microsec.in
or
SMS <CK> space <Name> to 56070

Microsec Technologies Limited

2nd Floor, 15, Ashutosh Mukherjee Road, Bhawanipore, Kolkata 700 020, WB, India
Land Phone: +91 33 7105 1000 Fax: +91 33 7105 1111
Website: www.ck.microsec.in Email: secretary.ck@microsec.in